What Credit Cards Can You Get With a 600 Credit Score?

A 600 credit score falls within the “fair” range, according to both FICO and VantageScore models. This score indicates a credit-building journey is in progress, but it presents limitations when seeking credit products. Lenders often view scores in this range as posing a medium-to-high risk, influencing the types of credit cards available and their terms.

Types of Credit Cards for a 600 Score

Secured credit cards are accessible options for those with fair credit or limited history. These cards require a refundable cash deposit, which often corresponds to the credit limit, commonly starting around $200. This deposit acts as collateral, reducing issuer risk and making approval more likely. Secured cards function like traditional credit cards, with payment activity reported to major credit bureaus.

Some unsecured credit cards are designed for individuals with fair or building credit. These cards do not require an upfront security deposit. They may come with lower credit limits, higher Annual Percentage Rates (APRs), or various fees. Issuers often report payment behavior to credit bureaus, allowing cardholders to demonstrate responsible credit management.

Store credit cards offer another avenue, often having more lenient approval standards than general-purpose cards. These cards are linked to specific retail chains, restricting their use. They can be easier to obtain but often carry high APRs. They can contribute to a credit history if the issuer reports account activity to credit bureaus.

Understanding Card Features and Terms

Credit cards for a 600 credit score have specific features and terms. The Annual Percentage Rate (APR) tends to be higher for cards designed for fair credit. Secured cards often feature average APRs of 28.00% or higher, with some reaching 29.99%. This elevated interest rate underscores the importance of paying the full balance each billing cycle to avoid substantial interest charges. Carrying a balance on these cards can quickly increase the total cost of borrowing.

Annual fees are common for credit cards for fair credit. Many cards impose an annual fee, adding to the cost of ownership. Some secured cards have annual fees, with some as high as $50. Some unsecured cards may offer a $0 annual fee, especially for the first year with certain conditions.

Initial credit limits on these cards are lower than for consumers with excellent credit. For secured cards, the limit often matches the security deposit, starting at $200. Unsecured cards may begin with modest limits, such as $500 or less. However, with consistent, responsible use, cardholders may be considered for a credit limit increase after six to twelve months. This potential for growth highlights the cards’ role as credit-building tools.

These credit cards report payment activity to major credit bureaus: Equifax, Experian, and TransUnion. This reporting is a direct mechanism for building or rebuilding credit history, as timely payments contribute positively to a credit score. Cardholders should also be aware of other potential charges, such as late payment fees, foreign transaction fees, or cash advance fees.

Building Your Credit Profile

Making on-time payments consistently is the most impactful factor in improving a credit score. Regularly paying at least the minimum amount due by the due date avoids late fees and prevents negative marks on a credit report. Prioritizing timely payments across all credit obligations forms the bedrock of a strong credit history.

Managing credit utilization is another aspect of building credit. Credit utilization refers to the amount of credit used relative to the total available credit. Maintaining a low credit utilization ratio, ideally below 30%, is generally recommended. For instance, if a card has a $300 limit, keeping the balance below $90 would be beneficial. High utilization can negatively impact credit scores, even if payments are made on time.

The length of credit history plays a role in credit scoring, as a longer history of responsible credit management tends to be viewed more favorably. While this factor builds over time, maintaining existing accounts in good standing and avoiding unnecessary account closures can help to preserve the average age of accounts. Consistency in using credit responsibly over several years demonstrates a reliable financial behavior pattern.

While not as heavily weighted as payment history or utilization, a healthy credit mix can be advantageous. This involves having a variety of credit types, such as revolving credit (like credit cards) and installment loans. However, it is important not to take on debt solely to diversify a credit mix. Regularly checking credit reports from all three major bureaus is a prudent practice. This allows individuals to monitor their credit standing, identify any errors, and understand the specific factors influencing their score. Correcting inaccuracies can help ensure the credit report accurately reflects one’s financial behavior.